The American Families Plan proposes ending the ability for investors to use Section 1031 to defer taxes on gains greater than $500,000. Business owners and real estate investors can take action now to minimize the tax impact of this and other proposed tax changes.
Read MoreThe real estate investment strategy of doing successive Section 1031 exchanges and planning for a stepped up basis upon death may no longer be viable if the Biden tax plan becomes law.
Read MoreRevenue Procedure 2020-34 provides a safe harbor for loan forbearances, lease modifications, and additional capital contributions needed due to the COVID-19 pandemic.
Read MoreOn June 21, 1893, at the World’s Columbian Exposition in Chicago, more than 2,000 people gathered for the opening of the world’s largest Ferris Wheel. After George Washington Gale Ferris, Jr., designer of the wheel, and other dignitaries gave speeches, and the fifty-piece Iowa State Band played patriotic tunes, the wheel was started for the first time, belying the background story.
Read MoreA real estate investor might start small, with a single duplex and eventually, through a series of purchases, sales, and reinvestments, the real estate investor may own multiple large apartment complexes, office buildings, or even high-rise mixed-use buildings. In those instances, although the primary purchase was real estate, each purchase would come with a certain amount of personal property in the form of appliances, furnishings, supplies, and other equipment necessary to operate the real estate. Comparing a real estate transaction to a violin purchase, purchasing the violin would be akin to purchasing the real property, and purchasing the bow and case would be more like the personal property that is purchased with the real estate investment.
Read MoreMy son started at age three playing a 1/32 size violin, which with an eight-inch body looked more like a toy than a violin. A few months ago, my son traded in his ¾ size violin for a 7/8 size instrument, which is valued at 20 times the price we paid for that original 1/32 size violin nearly nine years before. When we made the most recent violin purchase, I realized how our “investment” in violins is like real estate investment.
Read More